Imported hot rolled coil offers to Indian market go down further by USD 5/MT this week on news of possible safeguard duty and currency fluctuation.
Current offers for SS400 commercial grade HRC offers are assessed at USD 315/MT CIF India, whereas offers from Korea and Japan are assessed at USD 360/MT CIF India for September shipments.
It may be noted that imports from China attract a duty of 12.5%, whereas import duty for cargoes from Japan and Korea are around 1% due to trade agreement.
“Last deal to be heard was for around 2,000 MT, concluded by a Japanese trader at USD 370/MT, CFR India. However, current offers are assessed at USD 360-365/MT CFR India”, said a global trader based in Mumbai.
Indian importers are cautious about making fresh bookings
With possible safeguard duty on Hot Rolled Coil, Indian importers are not taking any position. Indian government has hiked import duty by 5% in last 2 months but falling Chinese offers have failed to reduce imports to India.
In order to stop cheap imports, steelmakers have filed an application with DGFT (Directorate General of Foreign Trade) to impose safeguard duty.
Recently, Steel Authority of India (SAIL) mentioned that government may soon impose safeguard duty of 10%.
2.5 mm (SS 400) Grade HRC Prices as on 1 Sept’15
| Delivery | Grade,Origin | Price | W-o-W | M-o-M |
| FOB China | SS 400, 2mm | 300 | 0 | 5 |
| CFR India | SS 400,2mm,China | 315 | 5 | 10 |
| CFR India | 2mm, Japan/Korea | 360 | 0 | 15 |
| FOB Black Sea | 2mm | 320 | 10 | 5 |
| FOB India | 2mm, IS2062 | 365 | -10 | 25 |
Prices in USD/MT
Source: SteelMint Research
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